After a significant rally, the major benchmark indices witnessed some correction On Tuesday, 28th September 2021, where BSE Sensex and Nifty 50 fell by around 0.68% and 0.60% respectively. On Tuesday, the BSE Sensex ended up below the 60,000 mark at 59,667.60, whereas Nifty 50 closed at the levels of 17,748.60. While till the morning session on the next day i.e., 29th September 2021, both the indices are down by 0.9% and 0.6% respectively.
- The Debt Market has started reacting to the Fed Reserve Commentary where it was announced that it will start the Quantitative Easing Tapering from the end of this calendar year i.e., December 2021.
- The US 10 Year G-Sec Yield has been rising for the last 2-3 days and is currently hovering above 1.50%. It shows that the other alternative to Equity Class is developing.
- Another reason behind this market fall is China’s Evergrande Crisis, as there is no clear picture available for the same, and there are some complexities with that crisis and hence this factor too is having some impact behind the fall in the stock market.
- Also, China is witnessing a Power Shortage which is s surprising news and which is impacting and could impact more the Manufacturing Industry. If so happens, this will affect the MNCs, and hence an indirect impact on the Global Market.
Some Positive News:
- Amid this market fall and some developing negativity in the market, there is some silver lining over here which is Advance Tax Figures of Q2FY22.
- The Advance Tax Collections from the Top 20 Companies in the country for the period of July-September is up by 47% YoY. The Collection Amount is around Rs. 27,210 Cr. which shows that profitability of the companies can increase in this quarter.
This fall in the stock market could be a buying opportunity for the investors who were waiting for some dip in the market or waiting to make an entry in the market. Follow a staggered manner of investing and should avoid investing in a lumpsum manner. Do follow due diligence before making any investment decisions.